NAB’s new boss said he’s committed to keeping the major bank’s branches open and ensuring cash continues to flow through Australia. More people are banking and transacting digitally, sparking concerns more bank branches will close their doors and it will become harder to access physical cash.
NAB CEO Andrew Irvine said he thinks bank branches are an “essential part of the banking proposition”. He shared he thinks branches will be in place “for a very long time to come” but admitted there were challenges.
“The challenge, of course, is that more people are doing their banking digitally today and fewer people are going in the branches,” Irvine told 3AW.
“So as a steward of our resources, we have to look at putting them where our facilities are being used.”
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Irvine claimed he hadn’t closed a single NAB branch since taking on the top job six months ago. When asked whether he planned to keep existing branches open, he said that was the plan.
“As long as they’re busy, that’s the view I have and I’m looking at. Look, I’ve got branches where there is no one in there, I think we’ll have to have a question,” he said.
“But if the branches are busy, we’ll keep them open. Absolutely.”
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Some 424 bank branches have closed across Australia in the year to June 30, 2023, with 122 located in regional and remote areas, according to the Australian Prudential Regulatory Authority.
S&P Global Market Intelligence reported that CBA closed 73 branches in 2023, Westpac closed 167, ANZ closed 72 and NAB closed 63.
According to Banking Day, NAB has shut 10 branches in Mullumbimby, Cessnock, Moruya, Yass, Bright, Pittsworth, Lithgow, Oberon, Proserpine and Sarina since Irvine started in April.
CBA and Westpac extended their moratoriums on regional bank closures until December 2026 and January 2027 respectively.
‘No questions around cash’: Cash to keep flowing
Irvine, who is also the chair of the Australian Banking Association, said he was working with Armguard to ensure cash continued flowing through Australia.
In June, the cash transport business secured a $50 million deal with the big banks, supermarkets and major retailers to ensure cash continues flowing around the economy for at least another year.
“Thankfully, at least for the next year, it’s been solved and we’re working with Armaguard so that we can put them on a stable foundation so that there’s no questions around cash going forward,” Irvine said.
“The challenge for them has been there’s fewer people using cash so they’re making less money in their business. That’s the issue.”
Cash made up just 13 per cent of total consumer payments in 2022, according to Reserve Bank of Australia (RBA) data, dropping from 69 per cent in 2007 and 27 per cent in 2019.
NAB defends questioning customers over cash
Irvine also explained the bank’s decision to question customers who withdraw “significant amounts of cash”, something which is standard across the industry.
One listener, George, said he tried to withdraw $5,000 from a NAB branch and was made to justify the cash withdrawal.
“I said fish and chips, and she said not good enough,” the customer explained.
Irvine said the questioning was part of “know-your-customer regulations and the law in Australia” so the bank knew who the customers were and what they were using the money for.
“If there’s criminal activity, we want to be able to on an underlying basis understand that, and obviously if you’re using it for your day-to-day needs, that’s OK,” Irvine said.
“But if you’re constantly taking out significant amounts of cash, that’s a bit of a red flag.”
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